Committee Minutes

MINUTES/URBAN DEVELOPMENT COMMITTEE
Wednesday, February 25, 1998 - 4:00 p.m.

Members present: Beach, Bouley, Polovitz.

1. Matter of Rental Rehab. Program.
Curt Siewert reported this was brought to committee earlier and they were requested to go back and contact people who have con-tacted their office re. use of funds and to look at potential use of funds in the central business district and submitted breakdown of rental rehab requests after September 15, 1997 (after deadline) for $277,000; applications for additional funds of $233,600; and buildings for possible apartment rehab. $576,000. He questioned whether it would be fair to open up to people who have contacted them without opening up to everybody. He reported they have $687,000 remaining in fund. Beach suggested down scaling program for late and requests for additional applications, for 2/3rds of program and left-over funds put into downtown rehab; and expressed concern that not everyone won't know program re-opened. It was noted that this is zero interest loan over 10 years, 5 years deferred, and start getting money back; money goes into entitlement grant under same guidelines, certain criteria that has to be met.
Terry Hanson reported they have special request for applicant that was previously approved for property for rental rehab. that was subsequently bought out by the City, none of those funds went into the property as a rehab, and he has specifically requested that those funds go into other properties he owns for which he did not submit applications, and also for application that didn't get processed.

Moved by Polovitz and Bouley to proceed with processing of applica-tions for rental rehab funds for Randall Brown, 411 Belmont Road, and John Widdel, Jr. at 2102 1st Avenue North and 2101 University Avenue. Motion carried. (Comm. only)

Moved by Polovitz and Bouley that we open applications to April 1 and advertise that there is possible funding and further that we not consider applications for additional funding on existing projects. Motion carried.

2. Matter of Industrial Park expansion program.
Mr. Hanson reported that there are two items under this pro-gram. 1) matter of change order that is result of contract issued to Molstad Excavating for the installation of the streets in the Industrial Park expansion on a per unit basis and the final com-putation of the units at the end of the contract resulted in a change of $5,862.20, which was paid to Molstad but have to go through process to provide EDA with an approved contract amount so can reimburse us for those dollars. Mr. Siewert reported that there was change in final quantities on unit cost but not change in total contract. Moved by Polovitz and Bouley to approve change order in the amount of $5,862.20. Motion carried.


MINUTES/URBAN DEVELOPMENT COMMITTEE
February 25, 1998 - Page 2

Mr. Hanson reported second part of the same project, and was submitted to EDA with a total cost of $1.5 million, the City went forward with a project in an estimated cost of $1.6 million pro-viding additional $100,000 to the project to cover any additional cost that may arise during the construction of the project that wouldn't be funded with EDA funds because of fixed amount of the grant. The funding from the City came from a $400,000 contribution to the project, then $200,000 of the $600,000 that the City put into the project was provided by a loan from the Loan Stabilization Fund to the project and that loan was to be repaid at a rate of $50,000 per year by transferring funds from the Economic Develop-ment Fund. He reported that the project came in at a total cost of $1.47 million under the initial project estimate of $1.5 Million, and resulted in remaining balance of $11,200. (It was noted that this is a pre-flood project - had to do with Cirrus project and covers buying land and installing streets) He stated that the total project came in at over $100,000 under the $1.6 million estimate, and is asking committee/council to determine what to do with remaining balance in this fund; could transfer balance back to the Loan Stabilization Fund as payment towards that loan reducing the amount that has to come from fund in future years, but is asking council to utilize the $109,000 of these funds to extend 48th Street south so it passes the front of the Noah's Ark building. He stated that it was felt because of large parking lot in front of Noah's Ark that this street should be extended to the south entry of that lot, which it was. He stated he would like to utilize since this street which is part of Industrial Park expansion to use these funds to pay for the street, and would provide additional funds within the Noah's Ark budget for other improvements on that project. He reported that these are City funds and no further involvement with EDA with this street. He stated he would repay the interest on the Loan Stabilization Fund, $8,688.14.

Polovitz moved to approve utilizing the remaining funds in Dept. 4113, which is the Industrial Park Expansion Project, for the extension of South 48th Street. Bouley seconded the motion. Motion carried.

3. Budget amendment:
a) Urban Development - $509,623.00
Mr. Hanson reported this is an administrative function only, that in 1997 State of North Dakota gave $1 Million CDBG and was used and added to $7.5 million out of the supplemental grant for the $8.5 million rental rehab program, and because State dollars
and not part of supplemental grant account for under different grant, have to keep separate, and as everything budgeted, ran this through as it is the remaining balance of the $1 million as of January 1, 1998. These funds already obligated under the program.
Moved by Polovitz and Bouley to approve the budget amendment.
Motion carried.

MINUTES/URBAN DEVELOPMENT COMMITTEE
February 25, 1998 - Page 3

4. Matter of conflict of interest re. use of CDBG funds.
Mr. Hanson stated he wasn't sure which committee to bring this matter to re. conflict of interest re. use of supplemental CDBG funds. He stated he was going to ask committee to initiate proper action to open the supplemental CDBG funds to City employees and City elected officials based on regulations. Committee suggested this be referred to Flood Response Committee as an extra item.

Moved by Polovitz and Bouley to adjourn; meeting adjourned at 4:55 p.m.

Alice Fontaine
City Clerk

Dated: 2/26/98.